Scenario 24-2

Multiple Choice

Scenario 24-2.The following facts apply to a small,imaginary economy.
• Consumption spending is $5,200 when income is $8,000.
• Consumption spending is $5,536 when income is $8,400.
-Refer to Scenario 24-2.The marginal propensity to consume for this economy is

A) 0.650.
B) 0.659.
C) 0.650 or 0.659,depending on whether income is $8,000 or $8,400.
D) 0.840.